In Sacramento, dumb ideas don’t have a party affiliation. Dan Walters calls out Democratic Santa Clara County Assemblyman Jim Beall out for a doozy:
Assemblyman Jim Beall, D-San Jose, is carrying Assembly Bill 81, which would protect airlines from paying higher sales taxes on their fuel purchases in California when prices spike upward. It would levy taxes on the average of spot fuel prices for the preceding five years, rather than on the current price.
The State Board of Equalization estimates that if enacted, the measure would reduce sales tax revenue by $108 million a year – just about what Vasconcellos’ software loophole costs, interestingly enough.
Like the Vasconcellos measure, the Beall bill would grant corporations a tax break that ordinary consumers don’t get. Motorists would still pay higher taxes when fuel prices spike. (SacBee)
At a time of budgetary crisis, this is an exceedingly bad idea. It puts stability of the airlines fuel taxes over the stability of our schools. United’s bottom line over health care services for the elderly.
We already have too many loopholes in a disorganized and inefficient tax system, it’s not time to create more.
This Bill does not fit the “just common sense” or “just fairness” label- helping airlines manage jet fuel costs simply must be an issue brought to Beall…. but why?
I first thought that some airline must be a contributor to his campaign. The largest airlines serving Mineta San Jose Airport are Southwest, Alaska and Alaska-owned Horizon Air. Maybe the airlines promised expanded San Jose service but I can’t find any airline among his donors, but found several public employee unions.
Maybe expanded airport flight service would expand employment for union workers? Whose water is Beall carrying? as this is a strange bill and a strange time to be pushing it.The